Use the Following Calendar-Year Information to Prepare David Company's Statement

question 105

Essay

Use the following calendar-year information to prepare David Company's statement of cash flows using the direct method.You may omit the schedule reconciling net income and net cash provided or used by operating activities.
$\begin{array}{|l|r|}\hline \text { Cash paid to purchase machinery } & \$ 124,000 \\\hline \text { Cash paid for merchandise inventory } & 220,000 \\\hline \text { Cash paid for operating expenses } & 280,000 \\\hline \text { Cash paid for interest } & 4,000 \\\hline \text { Cash received for interest } & 10,000 \\\hline \text { Cash proceeds from sale of land } & 100,000 \\\hline \text { Cash balance at beginning of year } & 15,000 \\\hline \text { Cash balance at end of year } & 77,000 \\\hline \text { Cash borrowed on a short-term note } & 25,000 \\\hline \text { Cash dividends paid } & 24,000 \\\hline \text { Cash received from stock issuance } & 57,000 \\\hline \text { Cash collections from customers } & 522,000 \\\hline\end{array}$

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Definitions:

Buying Signal

A buying signal is an indication, either verbal or non-verbal, from a prospect showing interest in proceeding with a purchase.

Orphan Prospect

A potential customer or client that has not been regularly followed-up with or is no longer under the care of a specific salesperson, often due to changes in staff or oversight.

Sales Call List

A compiled list of potential or current clients that sales representatives intend to contact or visit to sell a product or service.

Re-qualify Prospect

The process of reassessing prospects to ensure they still meet the necessary criteria for potential sales or business engagements.